Boeing Ethical Dilemma

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In the situation between Boeing and McDonnell Douglas, the stakeholders would be the employees and investors of both companies. These individuals would be the stakeholders because they are the individuals who have an interest in the success and failure of the company. In the end of the situation, it states that after the $2.6 billion write-off due to cost overruns was announced, Boeing’s stock price had fallen 20%. This being because less people wanted to buy stock from this company due to the unethical practices and high cost overruns. Even though some investors left the company, McDonnell Douglas couldn’t because of their deal with Boeing. The main ethical issue in this case is the hiding of information from stakeholders by Boeing. They did not disclose the cost overruns in both their first and second financial statements because they knew their stock would have plummeted and their deal with McDonnel Douglas would have been revoked. One of the company 's public relations manager wanted to reveal the bad news on the dates of Princess Diana’s or Mother Teresa’s funerals in order for the…show more content…
This allowing investors and analysts who follow Boeing 's stock to imply that they wouldn’t have a problem doing this again. They can also imply the company isn’t going to change and isn’t going to be honest. The company may also lie about other problems within the business which could further hurt investors. Due to this situation investors and analysts could imply that they should start to look for other companies to invest in who have ethical practices and care for others and not just themselves. In conclusion, Boeing’s top management proved to their stakeholders that there number one priority is themselves and that they do not care about those who are investing in their
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